Indicator Overview

The indicator measures the ratio of the sale price to the acquisition cost for all coins moved on-chain (known as the Spent Output Profit Ratio, or SOPR). The displayed value is mirrored around the break-even line of 1.0, such that a value of zero on the chart corresponds to SOPR = 1.0. Positive values indicate that sellers across the entire market are realising an aggregate profit, and negative values mean they are realising an aggregate loss. This provides a direct, high-resolution view of the aggregate profit and loss taking behaviour.

How To Use

This ratio is highly effective for identifying trend continuation and market exhaustion in short to medium timeframes. When the indicator's mirrored value repeatedly bounces off the zero line (SOPR = 1.0) from below, it signals that loss-selling has been fully realised, often preceding a major relief bounce or trend reversal (capitulation has occurred). Conversely, repeated moves significantly above zero (SOPR > 1.0) which begin to trend downward suggest that aggregate profit-taking pressure is becoming exhausted. This often marks potential local tops or mid-cycle corrections, as the high incentive to realise gains dissipates. When the metric stays consistently above zero, it generally confirms a healthy uptrend where the market is aggregating wealth.